Photo was created by Webthat using MidJourney
European Antitrust Regulators Target Adobe’s Acquisition
European antitrust regulators are set to launch a formal investigation into Adobe’s $20 billion buyout of Figma, a cloud-based designer platform, according to a report by the Financial Times. The move highlights concerns over anti-competitive practices and raises the possibility of derailing the deal.
Detailed Investigation Over Anti-Competition Concerns
EU authorities are planning to proceed with a comprehensive investigation into Adobe’s acquisition of Figma. The probe, driven by anti-competition concerns, could extend for several months and potentially have significant implications for the deal’s completion, as sources familiar with the matter have revealed.
Global Regulators Fearful of Tech Giants’ Acquisition Power
The regulatory scrutiny faced by Adobe’s acquisition reflects the growing worries among global regulators that large tech firms acquiring smaller, innovative rivals may restrict competition. This concern underscores the need to maintain a fair and open market environment.
Adobe and Figma Engage in Constructive Discussions
Adobe is currently in the preliminary phase of the regulatory process and is actively engaging in constructive discussions with regulators from the UK, EU, and the US regarding the acquisition.
Similarly, Figma is looking forward to continuing conversations with regulators, as both companies navigate the regulatory landscape, as stated in separate emailed statements to Reuters.
UK Competition Watchdog and US Justice Department on Alert
The report follows the announcement by the UK competition watchdog last month that it was examining the Adobe-Figma deal. Moreover, it was disclosed by Bloomberg in February that the US Justice Department was readying an antitrust litigation to obstruct the acquisition, pointing to the escalated regulatory examination encompassing the transaction.
Antitrust Approval Required Despite Turnover Threshold
EU regulators have previously stated that Adobe must secure antitrust approval for the Figma deal, even though the transaction falls below the bloc’s turnover threshold for a review. This demonstrates the regulators’ commitment to evaluating potential anti-competitive effects and ensuring a fair marketplace for all parties involved.
CLICK HERE TO READ MORE ON WEBTHAT NEWS
